Reportable Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

The Company has determined that it operates in two operating and reportable segments, Cyber & Engineering and Analytics, as the Chief Operating Decision Maker (“CODM”) reviews financial information presented for both segments on a disaggregated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

Adjusted gross margin is the primary measure of segment profitability used by the CODM to assess performance and to allocate resources to the segments. Research and development costs incurred that generate marketable intellectual property (“IP”) and equity-based compensation are added back to the gross margin to derive the adjusted gross margin. Certain customer contracts that generate lower gross margin (revenue less direct costs including fringe and overheard costs) than the thresholds set by management are accepted as the work performed for these customer contracts also simultaneously generates reusable code and other IP that is used in the execution of future customer contracts that may potentially generate higher gross margin, or enhances the marketability of the products due to additional functionality or features.

The tables below present the Company’s operating segment results of operations for the following periods:

	Three Months Ended March 31, 2022
	Cyber & Engineering			Analytics			Total
Revenues	$	17,333		$	19,057		$	36,390
Segment adjusted gross margin	3,745			8,927			12,672
Segment adjusted gross margin %	22		%	47		%	35		%
Research and development costs excluded from segment adjusted gross margin							(2,105)
Equity-based compensation excluded from segment adjusted gross margin							(700)
Operating expenses:
Selling, general and administrative							22,020
Research and development							2,874
Transaction expenses							1,399
Operating loss							(16,426)
Net decrease in fair value of derivatives							(1,263)
Interest expense							3,555
Other expense							30
Loss before taxes							$	(18,748)
	Three Months Ended March 31, 2021
	Cyber & Engineering			Analytics			Total
Revenues	$	18,559		$	17,011		$	35,570
Segment adjusted gross margin	4,209			8,299			12,508
Segment adjusted gross margin %	23		%	49		%	35		%
Research and development costs excluded from segment adjusted gross margin							(2,228)
Operating expenses:
Selling, general and administrative							10,114
Research and development							928
Operating loss							(762)
Interest expense							1,860
Other income							(1)
Loss before taxes							$	(2,621)

The following table presents the assets by segment as of the following periods:

	March 31, 2022								December 31, 2021
	Cyber & Engineering		Analytics		Corporate		Total		Cyber & Engineering		Analytics		Corporate		Total
Total assets	$	74,533	$	153,231	$	44,061	$	271,825	$	74,808	$	154,085	$	154,429	$	383,322